Abstract – Policies designed to reduce inequality may fail because socioeconomic strati_cation can reappear through the private school system. We develop a theoretical model linking the skill distribution of the student population to the pro_tability of private schools. We use panel data of Brazilian municipalities to examine the relationship between test scores dispersion and private school entry. Bolsa-Familia, an important conditional cash transfer program, is used as a source of exogenous variation for the test scores’ dispersion in the public system. We show that towns where the students’ skill distribution widened because of Bolsa-Familia were more likely to attract new private schools.
About The Author
janeiro 1, 2010
WP 88 Incentive theory for the transition from Atlantic slave plantations to firms and labor markets
dezembro 11, 2015